Strategic Hotels & Resorts announced it will not proceed with its previously announced contracted purchase of hotel development space at the Aqua Building, which is currently under construction and adjacent to the company’s Fairmont Chicago Hotel.
“Despite the opportunities this property presents, the financial markets and economic operating environment have changed significantly since we first entered into the agreement to purchase the space in 2006, said CEO Laurence Geller in a company press release. “We remain committed to our thoughtful and disciplined business approach which, given the higher cost of capital, escalating total project costs and our dedication to maintaining sufficient liquidity for all market conditions, makes it imprudent for the Company to proceed at this time.”
